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LATAM Airlines Group chooses oneworld as its global alliance

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<strong>LATAM</strong> <strong>Airlines</strong> <strong>Group</strong> <strong>chooses</strong> <strong>oneworld</strong> <strong>as</strong> <strong>its</strong> <strong>global</strong> <strong>alliance</strong><br />

· Brazil’s TAM to leave Star for <strong>oneworld</strong> in early 2014<br />

· LAN Colombia to join <strong>oneworld</strong> too, building on LAN group’s 13-year membership of <strong>alliance</strong><br />

· Business <strong>as</strong> usual for customers meantime, with seamless transition promised<br />

· Latin America’s top airline group strengthens <strong>oneworld</strong>’s status <strong>as</strong> <strong>global</strong> first choice <strong>alliance</strong><br />

Thursday, 7 March 2013: <strong>LATAM</strong> <strong>Airlines</strong> <strong>Group</strong> today confirmed <strong>its</strong> selection of <strong>oneworld</strong>® <strong>as</strong> the <strong>global</strong><br />

<strong>alliance</strong> for all <strong>its</strong> p<strong>as</strong>senger airlines.<br />

The decision, announced at a meeting of the <strong>oneworld</strong> Governing Board held in Hong Kong today, means:<br />

· Brazil’s TAM <strong>Airlines</strong> will leave the Star Alliance to join <strong>oneworld</strong>, along with <strong>its</strong> Paraguay subsidiary.<br />

Their transition is expected to be completed during 2014’s second quarter.<br />

· LAN Colombia, the latest part of LAN, will join <strong>oneworld</strong> <strong>as</strong> an affiliate member, in the fourth quarter of<br />

2013.<br />

With Chile’s LAN <strong>Airlines</strong> flying <strong>as</strong> a full member of <strong>oneworld</strong> since June 2000 and LAN Argentina, LAN<br />

Ecuador and LAN Peru added since <strong>as</strong> affiliate members, today’s announcement will bring all of Latin<br />

America’s top airline group into the same <strong>global</strong> airline <strong>alliance</strong>, alongside 11 of the other leading carriers<br />

from around the world and 30 of their affiliates.<br />

An exact date for TAM’s departure from the Star Alliance will be announced in due course. The intention is<br />

for it to become part of <strong>oneworld</strong> immediately after it ex<strong>its</strong> Star.<br />

What the CEOs say<br />

<strong>oneworld</strong> Governing Board Chairman Tom Horton, Chairman and Chief Executive of American <strong>Airlines</strong>, said:<br />

“Membership of Latin America’s leading airline group, <strong>LATAM</strong> <strong>Airlines</strong> <strong>Group</strong>, in <strong>oneworld</strong> represents a<br />

major landmark in our journey towards establishing <strong>oneworld</strong> firmly <strong>as</strong> the first choice airline <strong>alliance</strong> for<br />

travelers not just across the Americ<strong>as</strong>, but the world over. We look forward to continuing to work closely<br />

with Enrique and Ignacio Cueto, Damian Scokin, Marco Antonio Bologna and their team <strong>as</strong> we welcome our<br />

new friends at TAM and their customers on board the world’s premier <strong>global</strong> airline <strong>alliance</strong>.”


<strong>LATAM</strong> <strong>Airlines</strong> <strong>Group</strong> <strong>chooses</strong> <strong>oneworld</strong> <strong>as</strong> <strong>its</strong> <strong>global</strong> <strong>alliance</strong>…2<br />

<strong>oneworld</strong>’s CEO Bruce Ashby stated: “We are delighted that, after <strong>its</strong> comprehensive review of <strong>alliance</strong><br />

options, <strong>LATAM</strong> <strong>Airlines</strong> <strong>Group</strong> not only decided to have LAN remain on board <strong>oneworld</strong>, but also to include<br />

TAM and all the other p<strong>as</strong>senger airline subsidiaries in the <strong>LATAM</strong> <strong>Airlines</strong> <strong>Group</strong> <strong>as</strong> well. This solidifies<br />

<strong>oneworld</strong>’s long-standing position <strong>as</strong> the <strong>alliance</strong> leader in Latin America and provides an even more<br />

attractive proposition for frequent international travellers the world over. We look forward to working<br />

with <strong>LATAM</strong> <strong>Airlines</strong> <strong>Group</strong> to ensure a smooth transition to <strong>oneworld</strong>.”<br />

<strong>LATAM</strong> <strong>Airlines</strong> <strong>Group</strong> CEO Enrique Cueto said: “We evaluated all the possibilities and chose the <strong>alliance</strong><br />

that offers the best benef<strong>its</strong> to our p<strong>as</strong>sengers, besides the best connectivity and products, <strong>as</strong> well <strong>as</strong> the<br />

greater synergies for <strong>LATAM</strong> <strong>Airlines</strong> <strong>Group</strong>. We are very happy with the decision. With this change,<br />

p<strong>as</strong>sengers flying with us will be able to book trips through the <strong>oneworld</strong> network of destinations and, for<br />

instance, connect from any of 950 destinations, including distant and exotic ones such <strong>as</strong> Hong Kong, Kuala<br />

Lumpur, Moscow or Melbourne, through <strong>oneworld</strong> member airlines.”<br />

TAM <strong>Airlines</strong> and TAM SA CEO Marco Antonio Bologna added: “This is important news to TAM p<strong>as</strong>sengers,<br />

and we are focused on ensuring a smooth transition for the company, our partners, and, most important,<br />

our clients.” He noted that TAM “is changing towards a growing <strong>alliance</strong>, able to offer the best connection<br />

options to our p<strong>as</strong>sengers”.<br />

What it means for customers<br />

<strong>LATAM</strong> <strong>Airlines</strong> <strong>Group</strong> and <strong>its</strong> airlines will work with Star and <strong>oneworld</strong> to ensure a seamless transition for<br />

customers.<br />

When TAM becomes part of <strong>oneworld</strong>, the 10 million members of <strong>its</strong> Fidelidade frequent flyer programme<br />

will retain both their tier status and any points they have earned.<br />

They will then be able to earn and redeem rewards on any <strong>oneworld</strong> member airline and enjoy all<br />

<strong>oneworld</strong>’s full range of services and benef<strong>its</strong>, including access for top tier members to some 550 airport<br />

lounges worldwide.<br />

At the same time, the 130 million frequent flyer cardholders of <strong>oneworld</strong>’s other member airlines will be<br />

able to earn and redeem rewards when flying on TAM and LAN Colombia.<br />

TAM’s network will be covered by <strong>oneworld</strong>’s range of <strong>alliance</strong> fares – the most extensive offered by any of<br />

the <strong>global</strong> <strong>alliance</strong>s including the market-leading <strong>oneworld</strong> Explorer round-the-world fare and <strong>its</strong> Visit South<br />

America p<strong>as</strong>s.<br />

A comprehensive communications programme will be set in place to keep customers fully informed <strong>as</strong> the<br />

<strong>alliance</strong> switch takes place.<br />

Until then, it is business <strong>as</strong> usual for customers and the airlines.<br />

more


<strong>LATAM</strong> <strong>Airlines</strong> <strong>Group</strong> <strong>chooses</strong> <strong>oneworld</strong> <strong>as</strong> <strong>its</strong> <strong>global</strong> <strong>alliance</strong>…3<br />

What it means for <strong>oneworld</strong><br />

LAN <strong>Airlines</strong> (Chile) h<strong>as</strong> been full member of <strong>oneworld</strong> since June 2000 adding since then LAN Argentina,<br />

LAN Ecuador and LAN Peru <strong>as</strong> affiliate members.<br />

Under today’s agreement, the other p<strong>as</strong>senger airlines in the <strong>LATAM</strong> <strong>Airlines</strong> <strong>Group</strong> will be added to<br />

<strong>oneworld</strong>:<br />

· TAM, which is the leading carrier of Brazil, Latin America’s largest economy and the region’s biggest<br />

air travel market. TAM operates to 60 destinations in 16 countries in Latin America, the USA and<br />

Europe, with a fleet of 161 aircraft operating 800 departures daily. It boarded 37.7 million<br />

p<strong>as</strong>sengers in 2011. It will add 35 destinations to the <strong>oneworld</strong> map. Its Paraguayan subsidiary<br />

will transition to <strong>oneworld</strong> at the same time.<br />

· LAN Colombia, which serves 23 destinations in three countries with a fleet of 20 aircraft operating<br />

113 departures a day. It will add 18 destinations in Colombia to the <strong>oneworld</strong> network. It boarded<br />

3.5 million p<strong>as</strong>sengers in 2012.<br />

With every unit of Latin America’s leading airline group – and the second biggest airline company in the<br />

world in terms of market value – flying <strong>as</strong> part of <strong>oneworld</strong>, the <strong>alliance</strong> will enjoy a position of leadership<br />

throughout South America and in virtually all of <strong>its</strong> main business centres, further strengthening <strong>its</strong> position<br />

<strong>as</strong> the first choice airline <strong>alliance</strong> for frequent international travellers within the region and worldwide.<br />

Four of <strong>oneworld</strong>’s established members – American <strong>Airlines</strong>, British Airways, Iberia and LAN – currently<br />

serve a total of seven destinations in Brazil. TAM will expand the <strong>alliance</strong>’s coverage of Brazil, one of the<br />

world’s most rapidly developing economies, to 42 destinations.<br />

Three of the <strong>alliance</strong>’s existing members – American, Iberia and LAN – serve three destinations in Colombia.<br />

LAN Colombia will extend the <strong>alliance</strong>’s coverage of the country to 21 airports.<br />

With the addition of TAM and LAN Colombia to <strong>oneworld</strong>, plus the impending additions of Qatar Airways<br />

and SriLankan in the coming year, and the planned merger, subject to approvals, of American <strong>Airlines</strong> with<br />

US Airways, the <strong>oneworld</strong> network will grow to more than 950 destinations in almost 160 countries served<br />

by a combined fleet of some 3,300 aircraft operating around 13,000 daily departures, carrying 480 million<br />

p<strong>as</strong>sengers a year and generating annual revenues of some US$ 140 billion.<br />

Today’s announcement, which follows a thorough review by <strong>LATAM</strong> <strong>Airlines</strong> <strong>Group</strong> of <strong>its</strong> <strong>alliance</strong> strategy,<br />

comes <strong>as</strong> <strong>oneworld</strong>’s undergoes <strong>its</strong> biggest expansion drive for five years, with the addition of:<br />

· airberlin, Europe’s seventh largest airline, in March 2012.<br />

· Malaysia <strong>Airlines</strong>, one of South E<strong>as</strong>t Asia’s most frequent award winners, on 1 February 2013.<br />

· Qatar Airways in the year ahead, <strong>as</strong> the first of the Big Three Gulf carriers to join any of the <strong>global</strong> airline<br />

<strong>alliance</strong>s.<br />

· SriLankan <strong>Airlines</strong>, also in the year ahead, <strong>as</strong> the first airline in the subcontinent to join any of the <strong>global</strong><br />

airline <strong>alliance</strong>s.<br />

· The proposed switch from Star to <strong>oneworld</strong> by US Airways <strong>as</strong> it combines with <strong>oneworld</strong> founder<br />

member American <strong>Airlines</strong> <strong>as</strong> part of their planned merger, subject to necessary approvals.<br />

more


<strong>LATAM</strong> <strong>Airlines</strong> <strong>Group</strong> <strong>chooses</strong> <strong>oneworld</strong> <strong>as</strong> <strong>its</strong> <strong>global</strong> <strong>alliance</strong>…4<br />

What it means for <strong>LATAM</strong><br />

<strong>oneworld</strong> gives <strong>LATAM</strong> <strong>Airlines</strong> <strong>Group</strong> partners who are the leading carriers between South and North<br />

America and between Latin America and Europe, plus the most popular gateways for Latin American<br />

travelers – American <strong>Airlines</strong>’ Miami and New York hubs, Iberia’s Madrid b<strong>as</strong>e and British Airways’ London<br />

home.<br />

With leading airlines from all the key regions of the world – including American <strong>Airlines</strong> in North America,<br />

airberlin, British Airways, Finnair, Iberia and S7 <strong>Airlines</strong> in Europe, Royal Jordanian and member elect Qatar<br />

Airways in the Middle E<strong>as</strong>t, and Cathay Pacific, Japan <strong>Airlines</strong>, Malaysia <strong>Airlines</strong>, Qant<strong>as</strong> and member elect<br />

SriLankan <strong>Airlines</strong> in Asia-Pacific, plus some 30 affiliates – <strong>oneworld</strong> believes <strong>its</strong> worldwide network is the<br />

most attractive for frequent international travellers, for whom it aims to be the first choice <strong>alliance</strong>.<br />

It is current holder of three of the leading five international awards for airline <strong>alliance</strong>s - named the Best<br />

Airline Alliance by Global Traveler in <strong>its</strong> GT Tested Reader Survey 2012 Awards for the third year running,<br />

the World’s Leading Airline Alliance in the 2012 World Travel Awards, retaining that title for the 10 th<br />

consecutive year, while retaining the World’s Best Alliance title in the second awards presented by<br />

Australian Business Traveller, in 2012. Most recently, it also received the debut <strong>alliance</strong> Flight Stats On-<br />

Time Performance Award for the <strong>alliance</strong> whose members had the best on-time record in 2012.<br />

About <strong>LATAM</strong> <strong>Airlines</strong> <strong>Group</strong><br />

<strong>LATAM</strong> <strong>Airlines</strong> <strong>Group</strong> SA (Santiago Stock Exchange: LAN / NYSE: LFL / Bovespa: LATM11) is the new name<br />

given to LAN <strong>Airlines</strong> SA <strong>as</strong> a result of <strong>its</strong> merger with TAM SA. <strong>LATAM</strong> <strong>Airlines</strong> <strong>Group</strong> SA now includes LAN<br />

<strong>Airlines</strong> and <strong>its</strong> affiliates in Peru, Argentina, Colombia and Ecuador, and LAN Cargo and <strong>its</strong> affiliates, <strong>as</strong> well<br />

<strong>as</strong> TAM SA and <strong>its</strong> subsidiaries TAM Linh<strong>as</strong> Aere<strong>as</strong> SA, including <strong>its</strong> business un<strong>its</strong> TAM Transportes Aereos<br />

del Mercosur SA, TAM <strong>Airlines</strong> (Paraguay) and Multiplus SA. Each of <strong>its</strong> airlines will continue to operate<br />

under their current brands and identities. This <strong>as</strong>sociation creates one of the largest airline groups in the<br />

world in terms of network connections, providing p<strong>as</strong>senger transport services to about 150 destinations in<br />

22 countries and cargo services to about 169 destinations in 27 countries, with a fleet of 319 aircraft. In<br />

total, <strong>LATAM</strong> <strong>Airlines</strong> <strong>Group</strong> SA h<strong>as</strong> more than 55,000 employees. Its shares are traded in Santiago, <strong>as</strong> well<br />

<strong>as</strong> on the New York Stock Exchange, in the form of ADRs, and Sao Paulo Stock Exchange, in the form of<br />

BDRs.<br />

About <strong>oneworld</strong><br />

<strong>oneworld</strong> is an <strong>alliance</strong> of the world’s leading airlines committed to providing the highest level of service<br />

and convenience to frequent international travellers. <strong>oneworld</strong> member airlines work together to deliver<br />

consistently a superior, seamless travel experience, with special privileges and rewards for frequent flyers,<br />

including earning and redeeming miles and points across the entire <strong>alliance</strong> network. Top tier cardholders<br />

(Emerald and Sapphire) enjoy access to some 550 airport lounges. The most regular travellers (Emerald) can<br />

also use f<strong>as</strong>t track security lanes at select airports and extra baggage allowances.<br />

more


<strong>LATAM</strong> <strong>Airlines</strong> <strong>Group</strong> <strong>chooses</strong> <strong>oneworld</strong> <strong>as</strong> <strong>its</strong> <strong>global</strong> <strong>alliance</strong>…5<br />

For further media information, contact:<br />

<strong>oneworld</strong><br />

Michael Blunt, VP Corp Communications<br />

Paula Calvanese, Corporate Communications<br />

<strong>LATAM</strong><br />

Guilherme Testa, Media Relations TAM<br />

airberlin<br />

Corporate Communications<br />

American <strong>Airlines</strong> Corporate Communications<br />

+44 7711 997487<br />

michael.blunt@<strong>oneworld</strong>.com<br />

+56 2 565 8981<br />

paula.calvanese@lan.com<br />

+55 11 5582 8795<br />

guilherme.testa@tam.com.br<br />

+ 49 30 3434 1500<br />

abpresse@airberlin.com<br />

+1 817 967 1577<br />

mediarelations@aa.com<br />

<strong>oneworld</strong>.com<br />

lan.com<br />

tamairlines.com<br />

latamairlinesgroup.net<br />

airberlin.com<br />

aa.com/newsroom<br />

British Airways<br />

Cathay Pacific<br />

Finnair<br />

Iberia<br />

JAL<br />

Malaysia <strong>Airlines</strong><br />

Qant<strong>as</strong><br />

Royal Jordanian<br />

S7 <strong>Airlines</strong><br />

Press Office<br />

Ivan Chan,<br />

Corporate Comms Manager International<br />

Corporate Communications<br />

Communications<br />

Yang Jian, PR<br />

Nor Zalida Ahmad, VP Strategic Comms<br />

Sophia Connelly,<br />

General Manager Corp Communications<br />

B<strong>as</strong>el Kilani, PR<br />

Anna Bazhina, Press Service<br />

+44 20 8738 5100<br />

media.relations@ba.com<br />

+852 2747 3837<br />

ivan_c_chan@cathaypacific.com<br />

+358 9 818 4020<br />

comms@finnair.com<br />

+34 91 587 7462<br />

media@Iberia.es<br />

+81 3 5460 3109<br />

jian.yang@jal.com<br />

+60 19 6635537<br />

eda.ahmad@malaysiaairlines.com<br />

+61 2 9691 3473<br />

sophiaconnelly@qant<strong>as</strong>.com.au<br />

+962 6 520 2060 / 2062<br />

b<strong>as</strong>el.kilani@rj.com<br />

+7 903 288 8508<br />

a.bazhina@s7.ru<br />

ba.com/press<br />

cathaypacific.com<br />

finnair.com<br />

iberia.com<br />

jal.com/en/press<br />

malaysiaairlines.com<br />

qant<strong>as</strong>.com<br />

rj.com<br />

s7.ru

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